Edited by Alain Fayolle and Kiril Todorov
Chapter 7: Board Network Characteristics and Company Performance in Sweden: The Case of Gnosjö Companies and their Board Members in Southern Sweden
Ossi Pesämaa, Johan Klaesson and Antti Haahti INTRODUCTION When managers of entrepreneurial companies typically talk about strategies, they first consider what products to make and secondly where to locate the business. The entrepreneurial companies locate in rural areas because of a wish to maintain a certain lifestyle, or because they can combine a resource available there with certain knowledge or interest that they have (Getz and Nilsson, 2004). In addition, many managers of entrepreneurial companies are confident in locating in a rural area, because there often is economic and social structure supportive of local corporate governance. The most central part of corporate governance is the board of directors. In an entrepreneurial company in a rural area, such members of boards are most likely to be individuals in dominant positions influential in the local economy. A board is thus an important forum for entrepreneurial companies to conceive, discuss and establish strategies (Randøy and Goel, 2003). Most boards reflect different combinations of ownership (Chuanrommanee and Swierczek, 2007). Some small entrepreneurial companies have a ‘paper board’, which consist of the entrepreneur and his/her spouse as well as an auditor. Others use the group dynamics of a board more fully, by including special expertise in combination with a required auditor and minority ownership (Bedard et al., 2004). Finally, there are other constellations where local friendships reflect the board structure (Ingram and Roberts, 2000). 125 M2543 - FAYOLLE PRINT.indd 125 08/03/2011 15:56 126 European entrepreneurship in the globalizing economy We know that...
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